When Is the Right Time to Buy Electricity at a Fixed Price?

Actively monitoring your home’s electricity consumption and market price fluctuations can become an engaging habit that helps you save significantly. However, signing a fixed-price electricity contract at the right moment can also lead to noticeable savings—around €120 per year for a medium-sized apartment and up to €250 for a private house, depending on when the contract is concluded. Edgars Cvetkovs, Head of the Commercial Department at energy company Enefit, explains when a fixed-price contract is most suitable for households and the best time to sign one.

Who Should Choose Fixed vs. Dynamic Pricing?

A fixed-price contract makes household budgeting easier by offering a stable rate per kilowatt-hour throughout the agreed term—12, 18, or 24 months depending on the customer's choice. The price remains unaffected by seasonal changes or wholesale market fluctuations during this period.

On the other hand, purchasing electricity at market (spot) prices often requires adjusting your daily habits: to benefit from dynamic pricing, it's essential to track price fluctuations and use electricity during cheaper hours.

“Historically, the market price has been more advantageous, especially for customers who can install solar panels and batteries. However, most people are reluctant to change their consumption habits. Enefit’s experience shows that 70–80% of households aren’t chasing the lowest spot price—they’re looking for peace of mind at a reasonable rate, which is why they prefer fixed-price contracts,” says Edgars Cvetkovs, Head of Enefit’s Commercial Department.

Does Seasonality Matter?

Seasonality has historically played a significant role in shaping electricity prices. For example, during spring floods in the Daugava River, electricity used to be much cheaper. In recent years, with the development of other renewable energy sources, seasonality has become less pronounced. Still, during spring and summer—when sunshine is abundant and reservoirs are fuller—prices tend to be lower.

For instance, in June, unusually cool, rainy, and windy weather conditions allowed for significantly increased hydropower and wind energy generation, reducing the average electricity price by 37% compared to May.

Cvetkovs emphasizes that no trader can predict electricity prices for next April, but historically, they’ve been more favorable than in November—based on data from the past 10 years.

“To secure a better price even in periods when electricity tends to be more expensive—like autumn or winter—I recommend not waiting until the last minute to renew your contract. That way, you won’t be forced to accept whatever price is available at the time. Also, try to plan the contract period so that it includes as many spring and summer months as possible. This will help keep the average cost lower over the entire term,” the expert advises.

How to Secure the Most Advantageous Fixed-Price Electricity Contract:

• Evaluate your habits: If convenience and stability matter to you, and you know you don’t want to adapt to daily price fluctuations, a fixed-price contract is a smart choice.

• Choose the right period: When signing a contract, select a term that includes as many of the naturally lower-priced seasons—spring and summer—as possible.

• Protect yourself from market risks: By locking in a fixed price, you safeguard yourself from unpredictable factors like geopolitical tensions, extreme weather events, and other disruptions. As the Baltics are electricity-deficit regions dependent on interconnections with Western Europe and Scandinavia, unforeseen outages can drive up prices. Fixed-price contract holders are shielded from such risks.

• Consider sustainability: Since July 1, Enefit is the only electricity trader in Latvia that provides 100% green electricity to all household customers at no extra cost. This allows everyone to reduce their environmental impact by using energy from renewable sources without harmful emissions or pollution. Green electricity is included in all contracts—both fixed and market-based. According to Enefit, when offered at the same price, most customers choose green energy.